Question
Suppose that a bank has equity of $50, interest expense of $15, PLL = $6, and net noninterest income of -$4 (all numbers in millions).
Suppose that a bank has equity of $50, interest expense of $15, PLL = $6, and net noninterest income of -$4 (all numbers in millions). Corporate tax rate = 40%. What is the minimum total interest income required to generate an ROE of 20%?
A. $170.45
B. $45
C. $36.55
D. $41.67
E. $28.85
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
